Resolving Business Disputes in Russia
Commercial disputes between companies in Russia go to the state arbitrazh courts, unless the parties agreed on arbitration. For most claims, a claimant must first send a written claim to the other side and wait thirty calendar days before filing. A first-instance decision in an arbitrazh court usually comes within several months. A foreign company can sue and be sued on the same terms as a Russian one, but it needs legalised corporate documents and a strategy for enforcement from the start.
The Arbitrazh Court System
Despite the name, arbitrazh courts are state courts for economic disputes. The system has four levels: first-instance courts in each region, appellate courts, district cassation courts and the Economic Collegium of the Supreme Court. Disputes between companies and entrepreneurs, corporate conflicts and bankruptcy belong here. All case documents and hearing dates are published on kad.arbitr.ru, which lets a party follow the case from abroad.
Stages and Typical Timing
| Stage | What happens | Guideline under the APC |
|---|---|---|
| Pre-trial claim | Written demand to the debtor | Thirty days, unless contract sets another term |
| First instance | Preliminary and main hearings | Up to three months, extendable in complex cases |
| Appeal | Review of facts and law | Up to two months |
| Cassation | Review of law only | Up to two months |
| Supreme Court | Discretionary review | Only on significant legal errors |
Cases with a foreign party often take longer because service abroad follows international treaties.
Arbitration as an Alternative
Parties may refer disputes to a permanent arbitration institution with the right to administer arbitrations in Russia, such as the ICAC at the Russian Chamber of Commerce, or to a foreign institution. Since 2020, Russian courts have treated disputes involving sanctioned Russian parties as falling within their exclusive jurisdiction. A foreign company should expect that its Russian counterparty may try to move the case to a Russian court and draft its clause accordingly.
Turning a Win into Money
After the decision enters into force, the court issues a writ of execution. The creditor presents it to the debtor's bank or to bailiffs. Interim measures, such as freezing accounts, can be requested at filing if there is a risk that assets will disappear. Foreign court judgments and arbitral awards need recognition by an arbitrazh court first. If the debtor is insolvent, the claim goes into the register of creditors in bankruptcy.
What a Dispute Costs
- State duty on the claim, calculated as a share of the amount claimed and capped by the Tax Code.
- Expert fees if the court orders an examination.
- Translation and legalisation of foreign documents.
- Lawyer's fees, part of which the winning side may recover from the loser if they are reasonable and documented.
Planning the Case
Start with the evidence: contract, acts of acceptance, correspondence, payment orders. Check the debtor's assets and other lawsuits before you file, since a judgment against an empty shell is worthless. Consider a settlement agreement approved by the court, which is enforceable like a decision. In cross-border cases, decide early where assets are located and where enforcement will actually take place.
Litigation Support from Attorney E. V. Petrova
Attorney E. V. Petrova assesses your claim, prepares the pre-trial demand and the statement of claim, represents you in the arbitrazh courts of Moscow and at appeal, handles recognition of foreign awards and supports enforcement.
The main channel of communication with the lawyer is email: lawyer@lawyer-moscow.com.